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Finance directors warned to 'cut unnecessary clutter from reports'
Accountancy News |
29/04/2010
The Financial Reporting Council (FRC) has announced plans to release new guidance aimed at helping financial directors cut down on the clutter in their financial statements.
According to the body, many directors include too much information in such reports, which can lead to them being difficult to understand, reports Accountancy Age.
Incidents of financial directors including lengthy accounting policies for transactions which may be irrelevant for their business type are among the reasons for the new guidance.
The report, which could reportedly be called Cutting Clutter, is part of an ongoing effort to ensure annual reports are clear and contain all relevant information.
It follows the FRC's Louder than words: Principles and actions for making corporate reports less complex and more relevant report, which was released in June last year, and only attracted 30 submissions.
The report highlighted several areas where urgent change is needed, including cash flow and net debt reporting, wholly-owned subsidiaries reporting requirements and disclosures.
Posted by John Lynes
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